How to Evaluate Best Segment for Equity Trading

      Comments Off on How to Evaluate Best Segment for Equity Trading

Regular traders are all aware from Intraday Equity Trading, which involves buying and selling of stocks in the same trading day. Daily traders usually prefer this kind of trading with the aim of earning daily profits/losses. They don’t have the intention of long term investments.

During Intraday Trading, traders have to specify the particular orders predestined for intraday trading. As the orders are squared off before the end of the trading day, it is also called as Intraday Trading. One should learn intraday trading tips in order to avoid losses without facing any difficulties.

Derivatives: Future and Option Trading

Future Trading refers to buying or selling stocks at a certain time in the future at a certain price.

Option Trading gives the right, but not an obligation, to buy or sell the underlying stocks at a presumed date and at a presumed price. While a buyer of an option pays the premium and buys the right to exercise his option, the writer of an option is the one who receives the option premium and therefore obliged to sell/buy the asset if the buyer exercises it on him.

Benefits of Futures and Options Trading:

1) Ability to Transfer Risk to Willing Trader

2) Capable to Make Profit with Minimum amount of Risk on Capital

3) Lower transaction costs

4) Provides liquidity, enables price discovery in underlying market

5) Derivatives market is lead economic indicators

Equity Cash: Stock Cash Trading

Cash trading, basically involves buying and selling of securities using a cash account. So capital needed for buying the securities is done on a cash to cash basis and does not involve margin or loans. In cash trading, after buying the securities, the investor has to pay in amount in cash within two days.

Small traders or investors who intend to make profits with minimal risk usually invest in Equity cash of any company which is listed in NSE Nifty or BSE Sensex. ProfitAim experts harness the movement of stock indices and provide Stock Cash tips, Stock Option Tips, and Stock future tips. There is no huge investment required for Stock Cash Trading; traders can easily harness good profit with proper guidance of expert advisory firm.